IBM Algo Risk Content on Cloud

Transcription

1 Service Description IBM Algo Risk Content on Cloud This Service Description describes the Cloud Service IBM provides to Client. Client means the contracting party and its authorized users and recipients of the Cloud Service. The applicable Quotation and Proof of Entitlement (PoE) are provided as separate Transaction Documents. 1. Cloud Service IBM Algo Risk Content on Cloud is a data as a service offering in which output created by IBM's team of researchers (as described in more detail below) is made available to Client in response to structured queries Client makes through a web-based interface. When used in this Service Description document, the term "output" means any materials made available to Client through the Cloud Service, including the hierarchy of such materials and the methodology through which they are created. In this Cloud Service, content is limited to queries Client may choose to save by using keyword and other search text Client inputs into the system, and output is treated differently than this content, because it is owned by IBM and not Client. As between IBM and Client, the output is owned by or licensed to IBM, and contains the valuable copyrighted and proprietary material of IBM or its licensors. Data Requirements The creation of the output depends on IBM having access to data provided by one or more third party vendors. Client agrees to the provisions of Appendix A which sets out terms and conditions for the use of such data, and which also apply to the use of the output. If IBM's access to any third party data required to provide Client with the Cloud Service is restricted for any reason, either party may terminate this Service Description, and in the case of termination by IBM only, IBM will refund to Client the remaining balance of any fees that have been paid by Client and not yet consumed as of the date of termination. Risk Management Considerations The Cloud Service is used by clients who typically operate in regulated financial industries. The output can help Client meet Client's compliance obligations, but use of the Cloud Service does not guarantee compliance with any law, regulation, standard or practice, and Client is responsible for Client's use of the output and the results obtained. 1.1 IBM Algo FIRST The IBM Algo FIRST Cloud Service offering is a database of operational risk case studies that are focused to the financial services industry. These case studies can be used to assist Client to satisfy the external data element requirement for Basel II or III, Solvency II or Regulatory Compliance programs. The database is updated on a regular basis and provides new and updated cases for Client to review and download as needed. IBM Algo FIRST provides the following: a. Base Capabilities for all user types (1) Access to the IBM Algo FIRST website with a userid and password via main web interface that allows Client to search for events by using a number of parameters (more fully described in the IBM Algo FIRST Manual), including company names, hierarchy names, dates and loss amount. (2) Allows Client to save search criteria for running the search again at a future date. (3) Allows Client to view results of searches in table format, as well as showing graphs that break down the results over hierarchies to which the data is indexed. (4) Allows Client to download the search results into.csv,.rtf or.pdf format. (5) Allows Client to download other supporting documents such as monthly newsletters, monthly summaries, quarterly statistics, whitepapers and guides. (6) Allows Client to set up custom download templates (selecting which fields Client prefer for download purposes). (7) Allows Client to set up alerts on saved searches (which alerts users to new events available to be viewed in the database). i (05/2017) Page 1 of 6

2 b. Authorized User Types (1) Standard FIRST Users have access to all Base Capabilities. (2) External Admin FIRST Users have access to the same capabilities as Standard FIRST Users, as well as access to the following External Admin capabilities: manage the FIRST users for their organization, including set up new users within their user entitlement; delete users; reset passwords; and change basic information about users. 1.2 IBM Algo OpData IBM Algo OpData is a quantitative database of operational risk events provided in an XLS file format, which is delivered on a bi-annual basis and may be incorporated with Client's own risk systems. These events can be used to assist Client in satisfying the external data element requirement for Basel II or III, Solvency II or Regulatory Compliance programs for financial services institutions. The particular focus of IBM Algo OpData is to provide "tail events" for the purpose of modeling operational risk. The database provides new and updated events in each release. As well as the events, the database also includes an audit trail which identifies changes in events since the previous version. 1.3 Optional Features IBM Algo FIRST Data add-on Types In addition to the Access and Authorized User, Client may choose to supplement IBM Algo FIRST Cloud Service offering access with a data add-on option. The data add-on allows Client to incorporate the FIRST data with Client's own risk software systems. The data add-on types available are: a. IBM Algo FIRST Data Add-on XML Version This version can be integrated with most risk systems as it is in XML format. Using the XML schema provided allows Client to create Client's own filters and program interfaces to integrate the FIRST data with Client's risk systems. The XML version of the FIRST data is provided on a daily, weekly or monthly basis. b. IBM Algo FIRST Data Add-on FastMap Version This version was designed specifically for integration with OpenPages ORM module version or higher. Specific instructions on how to integrate this data add-on to OpenPages is provided with the OpenPages software, which Client must license separately. The FastMap version of the FIRST data is provided on a daily, weekly or monthly basis. c. IBM Algo FIRST Data Add-on Security Directory Integrator Version, OpenPages GRC This data add-on is an alternative method of integrating with OpenPages ORM module version 7.2 or higher. Instructions on how to build assembly lines in IBM Algo FIRST Data Add-on Security Directory Integrator Version, OpenPages GRC to integrate this data add-on with OpenPages is provided with the OpenPages software which the Client must license separately. The IBM Algo FIRST Data Add-on Security Directory Integrator Version, OpenPages GRC data feed is provided to Clients on a daily basis. 2. Security Description This Cloud Service follows IBM's data security and privacy principals for IBM SaaS which are available at and any additional terms provided in this section. Any change to IBM's data security and privacy principals will not degrade the security of the Cloud Service. Client recognizes this Cloud Service does not offer features for the protection of content that contains personal data, sensitive personal data or data subject to additional regulatory requirements. If Client includes such data in its content, it instructs IBM to process such data in accordance with this Agreement after determining that the technical and organizational security measures are appropriate to the risks presented by the processing and the nature of the data to be protected. Client acknowledges that IBM has no knowledge of the types of data that have been included in the content, and cannot make an assessment as to the suitability of the Cloud Services or the security protections in place. The Cloud Service will enable Client to input and manage the following Client account information to support their use of the Cloud Service, which may be considered personal (PI) under applicable privacy laws: Client account information (e.g. address, phone and cell numbers, ) i (05/2017) Page 2 of 6

3 No other Client data is hosted within the application or IBM data centers for this Cloud Service. Client data is not shared with any third parties or used for any purposes other than support and licensing of the Cloud Service. 2.1 Security Features and Responsibilities The Cloud Service implements the following security features: The Cloud Service does encrypt content during data transmission between the IBM network and the Cloud Service Client's browser. The Cloud Service does encrypt content when at rest awaiting data transmission. In order to access the Cloud Service Client must be able to meet the following minimum encryption and browser requirements: Connection to the Cloud Service requires use of TLS 1.0 protocol or higher. 128bit encryption minimum for all transmitted or received data. Minimum of Internet Explorer 9 or higher or Firefox 45 or higher required. 3. Technical Support Technical support for the Cloud Service is provided via: a. Support. Technical questions or reporting of problems can be sent via to first.support@vnet.ibm.com. b. Initial Training. At no additional charge, IBM will provide Client with an initial web-based training session at a mutually agreeable time. Technical support is offered with the Cloud Service and is not available as a separate offering. Severity Severity Definition Response Time Objectives During Support Hours* 1 Critical business impact/service down: Business critical functionality is inoperable or critical interface has failed. This usually applies to a production environment and indicates an inability to access services resulting in a critical impact on operations. This condition requires an immediate solution. 2 Significant business impact: A service feature or function is severely restricted in its use or Client is in jeopardy of missing business deadlines. 3 Minor business impact: Indicates the service or functionality is usable and it is not presenting a critical impact on operations. 4 Minimal business impact: An inquiry or non-technical request. Within 4 business hours Within 1 business day Within 2 business days Within 1 business day * Support business hours for this Cloud Service are documented at 4. Entitlement and Billing Information 4.1 Charge Metrics The Cloud Service is available under the charge metric specified in the Transaction Document: a. Authorized User is a unit of measure by which the Cloud Service can be obtained. Client must obtain separate, dedicated entitlements for each unique Authorized User given access to the Cloud Service in any manner directly or indirectly (for example: via a multiplexing program, device, or application server) through any means. Sufficient entitlements must be obtained to cover the number of Authorized Users given access to the Cloud Service during the measurement period specified in Client's Proof of Entitlement (PoE) or Transaction Document. i (05/2017) Page 3 of 6

4 b. Access is a unit of measure by which the Cloud Service offering may be obtained. An Access is the right to use the Cloud Service offering. Client must obtain a single Access entitlement in order to use the Cloud Service offering during the measurement period specified in the Transaction Document. c. Legacy Contract is a unit of measure by which the Cloud Service offering can be entitled. Legacy charge metric types are no longer actively marketed by IBM. IBM may, however, at its sole and exclusive discretion, agree to increase Client's existing entitlements to use certain versions of the Cloud Service offering ("Legacy SaaS") under a Legacy entitlement type. Cloud Service offerings acquired under a Legacy charge metric type are indicated by the notation "Legacy", in the Transaction Document. Client's use of all Legacy SaaS is subject to the charge metric terms specified in the agreement pursuant to which Client originally acquired the ability to use the Legacy SaaS ("Legacy Agreement"). Under no circumstances will the terms of the Legacy Agreement be interpreted to expand Client's right to use the Legacy SaaS beyond the amount specified in the Transaction Document nor shall the terms other than the specified Legacy SaaS charge metric terms be deemed as governing the use of the Cloud Service offering. 4.2 Cumulative Entitlement IBM Algo FIRST Authorized User and Access are not alternative means for entitling usage of the Cloud Service offering. Client must obtain an Access entitlement, as well as sufficient Authorized User entitlements to cover all users of the Cloud Service offering. 5. Term and Renewal Options The term of the Cloud Service begins on the date IBM notifies Client of their access to the Cloud Service, as documented in the PoE. The PoE will specify whether the Cloud Service renews automatically, proceeds on a continuous use basis, or terminates at the end of the term. For automatic renewal, unless Client provides written notice not to renew at least 90 days prior to the term expiration date, the Cloud Service will automatically renew for the term specified in the PoE. For continuous use, the Cloud Service will continue to be available on a month to month basis until Client provides 90 days written notice of termination. The Cloud Service will remain available to the end of the calendar month after such 90 day period. 6. Additional Terms 6.1 General Client agrees IBM may publicly refer to Client as a subscriber to the Cloud Services in a publicity or marketing communication. 6.2 Effect of Cloud Service Expiration/Termination On expiration or termination of this Service Description, Client must destroy the output and all copies made, but may keep one copy of the output (except for any documentation provided through the Cloud Service portal) for archival and backup purposes, provided that all titles, trademarks and copyright notices and disclaimers and restricted rights notices are accurately reproduced on such copy. This archival copy may only be used for the purposes of meeting Client's regulatory compliance and audit obligations. 6.3 Additional Usage Terms for IBM Algo FIRST Data Add-on XML Version, IBM Algo FIRST Data Add-on FastMap Version, IBM Algo FIRST Data Add-on Security Directory Integrator Version, OpenPages GRC, and IBM Algo OpData If Client has purchased IBM Algo FIRST Data Add-on XML Version, IBM Algo FIRST Data Add-on FastMap Version, IBM Algo FIRST Data Add-on Security Directory Integrator Version, OpenPages GRC or IBM Algo OpData, Client is permitted to merge the output with any third party products. All other terms and conditions within the Agreement and Service Description remain applicable. i (05/2017) Page 4 of 6

5 Service Description Appendix A Third Party Data Terms This is Appendix A to the IBM Cloud Service Description. In the event of a conflict between the Agreement, Service Description, Transaction Document and this Appendix A, the terms of this Appendix A will prevail to the extent of the conflict. 1. Direct Data Vendor Fitch Solutions a. IBM has entered into an Agreement with Fitch Solutions, Inc. ("Fitch Solutions") for the provision of certain information (the "Fitch Solutions Information") which is used to create the output. b. Client agrees to use the Fitch Solutions Information, in whatever form, solely as part of the Cloud Service Offering in accordance with the terms of the Agreement, Service Description and this Appendix A. 2. Fitch Solutions Information Specific Terms of Use a. Although the Fitch Solutions Information is based upon information obtained from sources Fitch Solutions believes in good faith to be reliable, Client acknowledges that Fitch Solutions does not represent, warrant or guarantee the accuracy, correctness, integrity, completeness or timeliness of any part of the Fitch Solutions Information and expressly acknowledges Fitch Solutions disclaimer that Fitch Solutions does not audit or verify the accuracy of the information provided to it by any third party, including without limitation issuers, their representatives, accountants and legal advisors and others. b. Fitch Solutions also does not represent, warrant or guarantee: (i) the design or performance of any part of the Fitch Solutions Information; or (ii) that the Fitch Solutions Information will fulfill any of Client's particular purposes or needs. c. Fitch Solutions does not recommend the purchase or sale of financial products or securities and does not give investment advice or provide any legal, auditing, accounting, appraisal or actuarial services. A rating is not an opinion as to the value of securities. Some products included in the Fitch Solutions Information may include mathematically or non-mathematically derived theoretical approximations of value for certain securities. Fitch Solutions makes no representation or warranty that such evaluations are error-free, that input data supplied to or by Fitch Solutions for use in its evaluations or the software or methodologies used by Fitch Solutions are complete or free from errors, omissions, or defects, or that approximations of value generated by its models and evaluation methodologies necessarily correspond to the actual traded price which could be obtained on any given day for any particular security. Users of the Fitch Solutions Information assume all responsibility for verification of and appropriateness of the use of evaluations. Some products included in the Fitch Solutions Information may include opinions relating to the liquidity or other attributes of financial products or securities. Fitch Solutions makes no representation or warranty as to the accuracy, correctness, integrity, completeness or timeliness of any such opinion. Fitch Solutions is not responsible or liable for any credit, loan or investment decisions, damages or other losses resulting from the reliance upon or use of the Fitch Solutions Information or output derived from or incorporating the Fitch Solutions Information. d. EXCEPT FOR THE WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT, SERVICE DESCRIPTION OR THIS APPENDIX A, THE FITCH SOLUTIONS INFORMATION IS PROVIDED "AS IS" AND ALL FAULTS AND THE ENTIRE RISK AS TO SATISFACTORY QUALITY, PERFORMANCE, ACCURACY AND EFFORT IS WITH THE CLIENT. FITCH SOLUTIONS DISCLAIMS ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ABSENCE OF VIRUSES AND DAMAGING OR DISABLING CODE. FITCH SOLUTIONS SPECIFICALLY DISCLAIMS ANY WARRANTY OR REPRESENTATION THAT THE FITCH SOLUTIONS INFORMATION WILL MEET THE CLIENT'S REQUIREMENTS, THAT THE OPERATION OR USE OF FITCH SOLUTIONS INFORMATION AND/OR ITS USE WILL BE UNINTERRUPTED OR ERROR-FREE, THAT DEFECTS IN THE FITCH SOLUTIONS INFORMATION WILL BE UNINTERRUPTED OR ERROR-FREE, THAT ANY DEFECTS IN THE FITCH SOLUTIONS INFORMATION WILL BE CORRECTABLE OR i (05/2017) Page 5 of 6

6 CORRECTED, OR THAT FITCH SOLUTIONS INFORMATION IS COMPATIBLE WITH ANY PARTICULAR PLATFORM. 3. Restrictions Applicable to Output Except as specifically allowed under this Agreement and Service Description, or upon the prior written consent of IBM, Client and Client's users may not: (i) publish, copy, modify, merge, transfer or distribute any of the output; (ii) reverse-engineer, decompile, translate, disassemble or separate the components of the output; (iii) sublicense, rent, sell, lease or otherwise repackage or redistribute the output or any part thereof; (iv) use the output or any part thereof for third-party training, commercial time-sharing or in the operation of a service bureau; or (v) create any work or product, derived in whole or in part from the output. However, Client may, as part of and in the ordinary course of Client's business redistribute for Client's internal business purposes only (orally, in writing or by electronic means) in Client's own business applications, reports, presentations, graphs and other publications (collectively, "Materials") that include limited excerpts of the output without IBM's prior written consent provided that: (i) such excerpts are only supportive and incidental to the substance of the Materials; (ii) Client shall be liable for any such redistribution of the output; and (iii) Client agrees not to use the limited right to redistribute the Materials granted hereunder either (a) on a recurrent basis or (b) to develop for sale and/or distribution or otherwise a product or service that competes with any IBM product or service, or (c) in connection with a prospectus or other offering document or document required to be filed pursuant to the securities laws of any jurisdiction. In the event that Client makes use of such Materials as permitted above, Client shall always in the Materials acknowledge IBM as the source of the excerpts with an appropriate notice. Client shall allow IBM to view copies of the Materials by providing to IBM static copies of the Materials in electronic or hard copy format for the sole purpose of confirming that Client is using and distributing the Materials in accordance with the terms of this Agreement and Service Description. In instances where actual ratings or other data points are being shown as part of the Materials, there can be no more than seventy-five (75) ratings or other data points presented in any one particular business application, report, presentation, graph or other written publication. As used above, limited excerpts of the output: (i) shall have no independent commercial value; (ii) may not be used by the recipient as a substitute for the output; (iii) are not regularly or systematically updated; and (iv) are not separately marketed. i (05/2017) Page 6 of 6